Q1/3-MONTH3MONATSZWISCHENBERICHT INTERIM REPORT 20172018

OHB SYSTEM SELECTED FOR ESA SCIENTIFIC RESEARCH MISSION PLATO

OHB NOW ALSO WITH A KEY ROLE IN THE SECOND EXOMARS MISSION

MT AEROSPACE AWARDED CONTRACT FOR THE PRODUCTION OF A FURTHER TEN ARIANE 5 SHIP SETS

FIRST ARIANE 6 TANK SHIPPED BY MT AEROSPACE ON TIME TO ARIANEGROUP OHB SE Q1/3-MONTH INTERIM REPORT 2018 OHB SE AT A GLANCE

OHB SE is a European aerospace and technology group and one of the most important independent forces in the European space industry. With more than 35 years of experience in developing and executing innovative space technology systems and projects and its range of specific aviation/ aerospace and telematics products, the OHB Group is superbly positioned to face international competition.

Over the last few years, it has broadened its geographic footprint within Europe and now has facilities in many important ESA member countries. These strategic decisions on locations allow the Group to participate in numerous European programs and missions. The two “Space Systems” and “Aerospace + Industrial Products” business units reflect the convergence of these activities and the focus on specific core skills.

The “Space Systems” business unit focuses on developing and executing space projects. In particular, it is responsible for developing and manufacturing of low-orbiting and geostationary satellites for navigation, science, communications, earth and weather observation and re- connaissance including scientific payloads. Reconnaissance satellites and broadband wireless transmission of image data form core technologies for security and reconnaissance. The explo- ration segment works on studies and models for exploring our solar system, primarily the Moon, asteroids and Mars. Its human space flight activities chiefly entail projects for the payloads and operations of the International Space Station ISS.

2 The “Aerospace + Industrial Products” business unit is primarily responsible for manufacturing aviation and space products as well as engaging in other industrial activities. In this area, OHB has established itself as a leading supplier of aerospace structures for the aviation and space industry; among other things, it is the largest German supplier of components for the Ariane program and an established producer of structural elements for satellites. In addition, OHB is an experienced provider of mechatronic systems for antennas and telescopes and is involved in several major radio telescope projects. OHB telematics systems serve the logistics industry around the world by offering efficient transport management and consignment tracking facilities.

SPACE SYSTEMS AEROSPACE + INDUSTRIAL PRODUCTS

OHB System AG, MT Aerospace AG, Bremen & Oberpfaffenhofen, 70 % 100 % Augsburg, Germany Germany

OHB Italia S.p.A., MT Mechatronics GmbH, 70 % 100 % Milan, Italy Mainz, Germany

LuxSpace Sàrl, MT Aerospace Guyane S.A.S., 70 % 100 % Betzdorf, Luxembourg Kourou, French Guiana

Antwerp Space N.V., OHB Teledata GmbH, 100 % 100 % Antwerpen, Belgium Bremen, Germany

OHB Sweden AB, OHB Digital Services GmbH, 74.9 % 100 % Stockholm, Sweden Bremen, Germany OHB SE Q1/3-MONTH INTERIM REPORT 2018

DEAR READERS,

In the first three months of the year, OHB SE laid the foundations for the future. The Supervisory Board appointed Dr. Lutz Bertling and Kurt Melching to the Management Board to take over from Ulrich Schulz, who stepped down from the Management Board last year for age reasons, and also Dr. Fritz Merkle, who is leaving the Company in June. There was also a change in the Supervisory Board: Christa Fuchs stepped down from her position as chairwoman of the Supervisory Board, while Robert Wethmar was elected as the new chairman. The Group established two new subsidiaries in the promising areas of services and life sciences. OHB Satellitenbetrieb GmbH will be pooling the Group’s previous business in these areas, while Blue Horizon Deutschland GmbH will be stepping up activities in life sciences.

Details of the most important event for the OHB Group’s operating business in the first quarter can be found in the section on material events occurring after the reporting date in this document: During the ILA Air Show in Berlin, OHB System AG was informed that its proposal for the PLATO scientific research mission had been selected by the European Space Agency ESA. This success is all the more significant as it marks the first time that OHB System will be participating in an ESA scientific research mission as prime contractor. The purpose of the mission is to discover and explore exoplanets (i.e. planets in other solar systems). Negotiations for the contract, which has a value of around EUR 297 million, are expected to commence in June. OHB System AG is continuing to participate as a subcontractor in a second scientific research mission aimed 3 at determining whether there is or ever has been life on Mars. Valued at EUR 103 million, the contract for the carrier module of the second ExoMars mission was awarded in March. The award of a study in ESA’s space position recognition programme will create the basis for further activities in this area.

The Aerospace + Industrial Products business unit has gained a good basis for future business following the receipt by MT Aerospace AG of a contract from ESA for a study devoted to the design of commercial micro-launchers. In addition, MT Aerospace was awarded what is expected to be the final contract for the delivery of components for the Ariane 5, which will remain in operation until 2022. The transition phase, during which the replacement Ariane 6 will also be launched, commences in 2020. MT Aerospace will also be supplying key components for the Ariane 6. The company delivered the hydrogen tank, the first component for the upper stage of the future European launch vehicle, in April.

At the end of the quarter on March 31, 2018, OHB SE companies had consolidated order books worth EUR 2,397 million, i.e. virtually unchanged over the end of 2017 (EUR 2,439 million).

Given the high order backlog and the upbeat business performance at the end of the first three months, we assume that the Group’s net assets and financial condition will remain strong and reaffirm our full-year guidance for 2018. We project total revenues of EUR 1 billion, EBITDA of EUR 65 million and EBIT of EUR 47 million.

Bremen, May 9, 2018

The Management Board OHB SE Q1/3-MONTH INTERIM REPORT 2018

OHB STOCK

STOCK MARKET AT A HIGH LEVEL MANAGEMENT BOARD BUT EXPOSED TO THE EFFECTS AND SUPERVISORY BOARD OF POLITICAL UNCERTAINTY SHAREHOLDINGS The benchmark German equity index DAX en- tered 2018 at a high level of 12,918 points, reaching a new all-time high of 13,597 points March 31, 2018 Shares Change in Q1 on January 23, 2018 before losing subs- Christa Fuchs, chairwoman of the Supervisory Board 1,401,940 – tantial ground in the further course of the Professor Heinz Stoewer, member quarter. A low for the quarter of 11,727 points of the Supervisory Board 1,000 – was hit on March 26, 2018, equivalent to a Marco R. Fuchs, chairman loss of around 14 percent over the all-time of the Management Board 6,046,610 – high. This decline was triggered by mounting Dr. Fritz Merkle, member political uncertainty over the threatened of the Management Board 1,000 – trade restrictions between the United States, China and Europe as well as fears of an escalation of the Syrian conflict. Although DIVIDEND PROPOSAL OF EUR 0.40 the DAX was able to climb back up to 12,800 PER SHARE TO BE SUBMITTED TO by the beginning of May, the heightened THE SHAREHOLDERS FOR APPROVAL uncertainty and, hence, greater volatility AT THE ANNUAL GENERAL MEETING persisted. ON MAY 24, 2018 As in the previous year, the Management OHB stock also benefited from the January Board and the Supervisory Board of OHB SE rally in the equity markets, reaching an all- will be asking the shareholders to authorise 4 time high of EUR 49.75 on January 9, 2018 the distribution of a dividend of EUR 0.40 per and closing January at EUR 46.35. Closely share. tracking the indices, it bottomed out at EUR 35.20 at the end of the quarter on March 29, RESULTS OF SHAREHOLDER 2018. IDENTIFICATION ANALYSIS For the first time, we arranged for a detailed In the period under review, average daily trad- identification of our institutional and private ing volumes came to 26,177 shares (Xetra investors in the 3rd quarter of 2017 in order plus floor trading), substantially above the to intensify efforts to attract new investors previous year’s figure of 6,557. and to achieve closer relations with existing ones. TREASURY STOCK As of March 31 of this year, OHB SE’s trea- All told, it was possible to identify just under sury stock comprised a total of 80,496 96 % of all shareholders and shareholder shares, equivalent to 0.46 % of its issued groups: capital. 69.72 % held by the Fuchs family pool 12.96 % held by institutional investors 11.74 % held by private investors (11.50% in Germany) 1.05 % held by banks for trading 0.46 % held by OHB SE as treasury stock ANALYST RATINGS

Bank Date Target Price Recommendation

Bankhaus Lampe May 4, 2018 50.00 Buy equinet Bank May 4, 2018 40.00 Neutral Commerzbank May 3, 2018 30.00 Reduce HSBC Trinkaus & Burkhardt April 27, 2018 34.00 Hold DZ Bank February 27, 2018 48.00 Buy OHB SE Q1/3-MONTH INTERIM REPORT 2018

OHB STOCK

PERFORMANCE OF STOCK FROM JANUARY 1, 2017 THROUGH APRIL 30, 2018 (INDEX-TIED) OHB DAX TecDAX 250

200

150

100

1/17 2/17 3/17 4/17 5/17 6/17 7/17 8/17 9/17 10/17 11/17 12/17 1/18 2/18 3/18 4/18

A detailed regional analysis of the institutio- participants were able to combine the capital nal investors shows that these are mainly market day with a visit to the ArianeGroup based in North America, continental Europe, halls. The members of OHB’s Management 5 the United Kingdom and Ireland as well as Board and the directors briefed analysts, in- Germany. vestors, bankers and business journalists on the status of current projects and recent REGIONAL SPLIT market trends. OF INSTITUTIONAL INVESTORS The Company published its consolidated 0.1 % financial statements for 2017 on March 21, Rest of World 1.3 % 2018, holding a press conference in Bremen 5.1 % UK and Ireland followed by an analyst conference in Frank- North America furt am Main on the same day. In the year to date, OHB has attended capital market con- ≈ 13 % 2.7 % ferences in Paris and Baden-Baden. Germany Q3/2017 THE STOCK AT A GLANCE 3.5 % Continental Europe

in EUR 3M/2018 3M/2017

INVESTOR RELATIONS ACTIVITIES High, Xetra 49.75 21.18 As usual, the Management Board of OHB SE Low, Xetra 34.90 18.27 provided preliminary guidance for the cur- Closing price, Xetra rent year during the capital market day, (final trading day of the period) 35.20 20.60 which was held this year on February 7 at Average daily trading volumes MT Aerospace’s new hall in Bremen, where (XETRA + floor) 26,177 6,557 the upper stage tanks for the European Market capitalisation, Xetra launch vehicle Ariane 6 are welded. As this (final trading day of the period) 615 million 360 million production hall is located directly adjacent Number of shares 17,468,096 17,468,096 to the ArianeGroup installation facilities, the OHB SE Q1/3-MONTH INTERIM REPORT 2018

CAPITAL MARKET DAY OF OHB SE ON FEBRUARY 7, 2018 IN BREMEN 1

6 3

2

1 Capital Market Day of OHB SE at the new hall of MT Aerospace in Bremen 2 Hydrogen tank of Ariane 6 3 Dr. Merkle gave insights into future projects OHB SE Q1/3-MONTH INTERIM REPORT 2018

INTERNATIONAL AIR AND SPACE FAIR ILA FROM APRIL 25 – 29, 2018 IN BERLIN

4

6 7

5 4 + 6 Exhibition booth of OHB SE 5 Chancellor Angela Merkel, Secretary of State Andreas Scheuer and Governor Dietmar Woidke in talks with Marco Fuchs 7 Prof. Ulrich Walter, ESA Astronaut hosted by OHB 8 Brigitte Zypries, former Business Secretary of State

7 8 OHB SE Q1/3-MONTH INTERIM REPORT 2018

Robert Wethmar

DR. LUTZ BERTLING AND ROBERT WETHMAR KURT MELCHING APPOIN- ELECTED AS CHAIRMAN TED TO THE MANAGE- OF THE SUPERVISORY BOARD, MENT BOARD OF OHB SE INGO KRAMER NOMINATED FOR ELECTION TO THE SUPER- VISORY BOARD

Ingo Kramer

Robert Wethmar, who has been a member of the Supervisory Board since 2012, was elected new chairman at the meeting held on March 20, 2018. Effective April 1, 2018, he took over

Dr. Lutz Bertling Kurt Melching from Group founder Christa Fuchs as chair- woman of the Supervisory Board. Christa Fuchs will remain a member of the Super- 8 The Supervisory Board of OHB SE appointed visory Board in the future. Dr. Lutz Bertling to the Management Board effective April 1, 2018. In this position, he In addition, the Supervisory Board passed a oversees corporate development, space unanimous resolution to nominate Bremer- services and digitalisation. In addition, the haven based businessman and chairman of Supervisory Board appointed Kurt Melching, the Federal Association of German Employ- who was already a member of the Manage- er Associations BDA, Ingo Kramer, as its ment Board of OHB System AG and director fourth member. Ingo Kramer will be stand- of finance and controlling of OHB SE, to the ing for election at the annual general meet- Management Board of OHB SE, also effec- ing on May 24, 2018 as an additional member tive April 1, 2018. He is now responsible for of the Supervisory Board. finance at the Group level.

Dr. Bertling and Dr. Fritz Merkle will be jointly responsible for corporate devel- opment until the latter retires from the KOEN PUIMÈGE NEW Management Board of OHB SE for age MANAGING DIRECTOR OF reasons on June 30, 2018, after which Dr. Bertling will oversee these activities on his ANTWERP SPACE N.V. own. One key aspect of his duties will en- tail efforts to harness synergistic effects Koen Puimège was appointed managing and to boost efficiency. Additions to the OHB director of the Belgian subsidiary Antwerp portfolio will contribute to the Group’s sus- Space effective January 1, 2018. He has tained profitable growth. been working in the space indus- try for more than 22 years as an engineer, project manager, operations manager and in business development. He originally joined Antwerp Space in 2015 as Chief Operations Officer. Koen Puimège OHB SE Q1/3-MONTH INTERIM REPORT 2018

OHB SE BROADENING ITS SERVICE ACTIVITIES

OHB SATELLITENBETRIEB BLUE HORIZON GMBH ESTABLISHED DEUTSCHLAND GMBH ESTABLISHED The purpose of the new company is to pool the OHB Group’s numerous activities and to Blue Horizon will be pursuing the vision of continue specialising in the operation of sat- creating the necessary conditions for en- ellite systems and related ground stations. abling sustainable life in space and for re- Looking forward, OHB Satellitenbetrieb vitalising ravaged landscapes on the earth GmbH will also be managing satellite con- by exploring and working on technologies stellations and providing related services. and processes in the area of life sciences. Rising demand for integrated systems and In addition to Blue Horizon, which was incor- related operations will open up enormous porated in Luxembourg in April 2017, OHB SE potential for growth in the years ahead. also established a German subsidiary, Blue Horizon Deutschland GmbH, which special- A preliminary contract which will be mostly izes in life sciences. Blue Horizon in Luxem- executed by the new company entails the bourg is working intensively on proposals 9 continued operation of the SAR-Lupe system for research into autonomous ecological until 2020. OHB System AG, a subsidiary of systems on the moon (Cubehab), biological OHB SE, has been operating this system for water monitoring systems (Aquahab) and more than ten years for the German federal biological experiments in weightless con- armed forces. It is composed of five radar ditions (Biosat). At its Bremen office, Blue satellites and a ground station. The new Horizon Deutschland is exploring biological service contract, which runs from the end technologies for growing plants on lunar of 2017 until the end of 2020, is valued at and Mars rocks. EUR 13 million. The Management Board considers life sciences in space to offer great business potential particularly as these activities are in line with OHB’s practice-oriented approach of leveraging space activities for the benefit of our life on earth. A large amount of the expertise already held by the OHB Group subsidiary is being transferred to these new space companies. OHB SE Q1/3-MONTH INTERIM REPORT 2018

SPACE SYSTEMS

SPACE SYSTEMS

At EUR 147.1 million, non-consolidated total revenues in the Space Systems business unit were up on the first three months of the previous year (EUR 113.8 million). The increase in total revenues resulted in similarly higher operating earnings (EBITDA) of EUR 9.9 million, (previous year: EUR 8.6 million).

Segment EBIT came to EUR 7.2 million, thus exceeding the previous year’s figure of EUR 6.6 million, despite the substantially higher depreciation and amortisation expense. The EBIT margin relative to the segment’s non-consolidated total revenues contracted slightly to 4.9% (previous year: 5.8%).

10 OHB SE Q1/3-MONTH INTERIM REPORT 2018

SPACE SYSTEMS

OHB NOW ALSO WITH A stand at the beginning of this year. The carrier KEY ROLE IN THE SECOND flight model is to be shipped in February 2019 to Thales Alenia Space in Turin, Italy, where it EXOMARS MISSION will be integrated with the other modules before being transported to Cannes, France. The complete space vehicle will then be OHB System AG entered into a contract tested in Cannes, after which it will be worth EUR 102.6 million with mission lead transferred to the Baikonur space port. manager Thales Alenia Space for the carrier module for the second ExoMars mission. The The ExoMars programme is divided into two ExoMars programme is a joint project being missions to the Red Planet: The trace gas pursued by the European Space Agency ESA orbiter (TGO) and an entry and landing module and its Russian counterpart Roskosmos for were launched in 2016. Successfully com- the purpose of searching for traces of life menced at the end of last year, the TGO on the Red Planet. With this second ExoMars scientific mission is to continue until the end mission going by the name of “ExoMars Rover of 2022. With the assistance of a fixed and Surface Platform Mission” (RSP), OHB’s Russian station and the mobile rover, the carrier module will be transporting a descent second mission is to continue and intensify and landing module and a European rover to the search for traces of life on Mars. In Mars in July 2020. OHB System will be addition to the carrier components mentioned supplying a structural model, an electronics above, OHB will also be supplying key test stand, the flight model and replacement elements of the Mars Rover. In this connection, parts, various items of ground equipment and it will be contributing its expertise in mathematical simulation models for the selecting, preparing, distributing and 11 carrier. For its part, OHB will be in charge of analysing soil samples taken from a depth a core team that delivers the subsystems of up to two metres. To this end, OHB is for the carrier, the Belgian affiliate Antwerp developing a high-resolution camera, a Space for instance is supplying the X-band complex system built into the rover for communications system and responsible for preparing and distributing the samples and the electronic ground equipment. OHB contributions to the RAMAN/RLS laser shipped the structural model at the beginning instrument for mineralogical examinations of 2017 followed by the electronics test on the planet’s surface.

Carrier of the ExoMars mission Trace Gas Orbiter (TGO) OHB SE Q1/3-MONTH INTERIM REPORT 2018

SPACE SYSTEMS

INTEGRATED BASEBAND TRITON-X: IMPORTANT (IBB) CONTRACT FOR FIRST MILESTONES TAKEN

ANTWERP SPACE LuxSpace has been working intensively on its The Integrated Baseband (IBB) of Antwerp new microsatellite platform called Triton-X Space has been selected for the latest since September 2017, with the project’s PROBA-3 mission, an autonomous formation phase 1 coming soon to an end. The platform flying mission of ESA to study the solar is designed for modularity and scalability, corona which will be launched in 2019. After allowing a faster design and production successful integration with the mission approach give high cost efficiency. Triton-X control centre software and with the will be extending the OHB Group’s existing satellite, it has been extensively tested during range and opening up new possibilities for the operations of the PROBA-2 and PROBA-V commercial applications. The platform is satellites at the ESA groundstation in Redu being developed in close collaboration with during the past three months, and showed to ESA. A so called “common core” allows be superior to its competitors. scalability, leading to a very lean product line, with currently three preliminary platform designs: Triton-X light, Triton-X medium and Triton-X high power. QUALIFICATION AND TESTING PHASE FOR During phase 1, LuxSpace’s Triton-X team achieved important milestones, such as 12 THE PROJECT ESAIL design and consolidation of the system IS ABOUT TO START architecture. Early prototyping of Triton-X key technologies in avionics and the power subsystem enabling a higher integration LuxSpace’s microsatellite project ESAIL, a density as well as a first test phase have public-private-partnership with ESA and the been successfully concluded. A second and Canadian company exactEarth, has been pick- third test phase is in preparation for end of ing up speed since the first quarter if 2018 May 2018. after passing important milestones. The pay- load is an AIS receiver for ship- and vessel- On top of the major milestones on the detection from space, and the satellite engineering level, intensive discussions with weight at launch will be approximately 80 kg. potential partners for Triton-X phase 2 are The satellite payload also enables advanced currently taking place. LuxSpace and the raw data handling and RF-spectrum sampling selected partner companies will become the for ground processing. core industrial team of Triton-X and go for a joint proposal on phase 2. One key element of The company is making progress in the inte- this phase is the co-engineering phase and gration phase of the flight model, which in-depth testing and prototyping in the fields started at the end of March and is expected of avionics, power subsystem and structure. to be finished by the end of October this year. The maiden flight for a Triton-X satellite As already most of the flight model units platform is scheduled for phase three at the designed by subcontractors have now been end of 2019. accepted, LuxSpace is about to finalise the qualification for the internally developed flight model units. At the same time, the com- pany is finalising its activities related to the assembly, integration and testing of the flat- sat until autumn this year. After that, the qualification and testing campaigns for ESAIL will start and are expected to be finished in early 2019. OHB SE Q1/3-MONTH INTERIM REPORT 2018

SPACE SYSTEMS

OHB AWARDED A STUDY TO PREDICT WEATHER PHENOMENA IN SPACE MORE EFFECTIVELY

On February 2, 2018, OHB System AG signed Solar activity has an enormous impact on a contract worth EUR 3.3 million with the satellites and can also affect infrastructure European Space Agency ESA for a study on on the earth. High-energy particles from the the satellite-based observation of weather sun can not only damage the sensitive phenomena in space. OHB System will be electronic systems fitted to satellites but conducting one of two parallel studies also interfere with telecommunications concerning a mission to “Lagrange Point 5”, networks and electricity grids on the earth. which is located around 150 million kilometres Extreme events may even trigger widespread from the earth. Currently, the space power outages. For this reason, ESA and environment surrounding the earth is largely NASA are jointly planning to install a satellite being monitored by ground-based systems. constellation for observing the sun. Year for For example, such residual objects as “space year, space weather effects cause damage debris” are observed and classified using in the billions to satellites and terrestrial radar systems and telescopes. A similar infrastructure. Accordingly, this system will situation also applies to the observation of be of great benefit for the economy as a space weather effects, which are also whole as well as for individual businesses. monitored from the surface of the earth. A particular focus is placed on the sun as it ESA has awarded a further two studies for exerts a material influence on the earth’s the Lagrange mission to identify the neces- environment in space as the central star in sary instruments. OHB System is involved in 13 our solar system. However, many effects can one of these two studies as a subcontractor be measured a good deal more efficiently in for the magnetometer, which measures the space, e.g. by using satellites. magnetic field between the earth and the sun in three dimensions around the satellite.

Artist's impression of measuring the magnetic field at the Lagrange Point OHB SE Q1/3-MONTH INTERIM REPORT 2018

SPACE SYSTEMS

OHB ITALIA SIGNED OHB Italia was awarded a contract from the A CONTRACT FOR THE Italian Space Agency (ASI) for the realisation of two scientific instruments, the VIS (visual REALISATION OF TWO Imager) and NISP (near-infrared spectrometre SCIENTIFIC INSTRUMENTS and photometre) instruments for the phase D of the EUCLID mission. EUCLID is an ESA FOR THE EUCLID MISSION medium class astronomy and astrophysics space mission. It was selected by ESA in October 2011 and its launch is planned for 2021. The EUCLID mission aims at under- standing why the expansion of the universe is accelerating and what the nature is of the source responsible for this acceleration which physicists refer to as dark energy. Dark energy represents around 75% of the energy content of the Universe today, and together with dark matter it dominates the matter-energy content of the Universe. Both are mysterious and of unknown nature but control the past, present and future evolution of the Universe. Artist's impression of the EUCLID mission satellite

14 OHB SE Q1/3-MONTH INTERIM REPORT 2018

AEROSPACE + INDUSTRIAL PRODUCTS

15

AEROSPACE + INDUSTRIAL PRODUCTS

In the first three months of 2018, non-consolidated total revenues in the Aerospace + Industrial Products business unit fell by roughly 20% over the year-ago period to EUR 44.0 million (previous year: EUR 55.2 million). The cost of materials and services purchased dropped by around 37% from EUR 29.1 million in the year-ago period to EUR 18.3 million in the period under review. As a result, operating earnings (EBITDA) rose slightly to EUR 4.4 million, up from EUR 4.3 million in the previous year.

The segment’s constant EBIT of EUR 3.0 million resulted in a wider EBIT margin relative to non-consolidated total revenues of 6.9%, up from 5.4% in the previous year. OHB SE Q1/3-MONTH INTERIM REPORT 2018

AEROSPACE + INDUSTRIAL PRODUCTS

MT AEROSPACE IS MT MECHATRONICS CONDUCTING RESEARCH AWARDED A CONTRACT INTO NEW CONCEPTS FOR THE LARGE FOR COMMERCIAL PRECISION SYSTEM MICRO-LAUNCHERS ON FOR THE ARIANE 6 BEHALF OF ESA LAUNCH PAD IN KOUROU

Until now, small satellites have frequently The construction of the new launch facilities had to “ride piggyback” on larger missions. for the Ariane 6 launcher in Kourou, French In an effort to find ways of reducing the time Guiana, is making swift progress. MT Mecha- required to place them in low orbits around tronics is playing a material role and on the earth, the European Space Agency ESA March 28 prevailed over the European has now asked MT Aerospace AG to conduct competition with the receipt of a contract feasibility studies into micro-launchers. MT for the delivery of the high-precision system Aerospace is exploring three different for the mechanical ground support equipment innovative launch service ideas. In one case, MGSE. This is an alignment platform for the the plan is for a two- or three-stage micro- final integration of the P120 boosters on the launcher to lift off from the ground to place launch pad. The technical challenge posed payloads with a weight of 200 kg in orbit. by this project is no less than to position the 226-tonne load of the launcher motor with 16 Contributed by Dassault Aviation to the its pallets in three axes with a high degree study, the “Daneo” scenario provides for the of precision before it is integrated with the launcher to lift off from an airborne aircraft central body of the launcher on the launching and to carry satellites with a weight of up base, which is also being supplied by MT to 50 kg into space. Mechatronics. With a weight of 800 tonnes, the launching base has already been shipped A further option being explored involves to Kourou, as have the first parts of the mast launching small satellites with a mass of up for the supply tower. to 75 kg from the “Bloostar”, a stratospheric vehicle, which is a cross between a balloon The new launching pad currently under and a rocket developed by Barcelona construction for the Ariane 6, which will be company Zero 2 Infinity. completing its maiden flight in 2020, is called ELA4 (l'Ensemble de Lancement Ariane No. 4). MT Aerospace in conjunction with its In contrast to its predecessor, the future respective partners will be assessing the European launcher will be assembled technological and economic feasibility of all horizontally, thus saving time and costs three alter-natives, developing business during integration. The launcher will only be cases for comprehensive launch service placed in a perpendicular position directly at packages for a low orbit and identifying the the launch pad shortly before take-off using most promising option within six months. a mobile building with a height of 90 metres, weighing 8,000 tonnes and mounted on rails. OHB SE Q1/3-MONTH INTERIM REPORT 2018

AEROSPACE + INDUSTRIAL PRODUCTS

OHB LOGISTIC OHB Logistic Solutions GmbH won two major SOLUTIONS RECEIVED customers in the first quarter: negotiations with a large automotive OEM in Germany FIRST ORDERS FOR were successfully completed, resulting in THE VISIOBOXX the placement of an order for the first 3,000 Visioboxx units. The automotive OEM sees the TRACKING UNIT main advantages of the tracking unit as being the scope that it provides for optimising its own internal supply chain and for monitoring global transportation. The ability to flexibly affix the unit to the container was a key factor in the customer’s decision. OHB LS is currently working with the automotive OEM on plans to expand the “track and trace” range.

The second major order was awarded by Egyptian government agencies following intensive negotiations. Talks commenced with the Egyptian side at the end of 2016, culminating in the signing of a service contract worth EUR 2.8 million. The contract provides for the delivery of 5,000 Visioboxx units, the installation of a local server 17 structure and the grant of a license for local production of the devices.

Tracking Unit Visioboxx OHB SE Q1/3-MONTH INTERIM REPORT 2018

GROUP INTERIM MANAGEMENT REPORT

The OHB Group’s total revenues are heavily At the end of the first three months of the dependent on the achievement of mile- year, the net cash outflow from operating stones and delivery dates for the individual activities came to EUR 49.1 million as projects and are therefore not linear in planned, and was up compared to the nature. At the end of the first three months, period the year before (EUR 29.2 million). they came to EUR 189.7 million, increasing The net cash outflow of EUR 3.1 million over the same period of the previous year from investing activities was significantly by just under 15% (previous year: EUR 165.3 down on the previous year’s figure of EUR million). 10.2 million, which had been dominated by spending on property, plant and equipment. Operating earnings (EBITDA) rose to EUR The net cash inflow from financing activities 14.2 million (previous year: EUR 12.7 million). of EUR 43.9 million (previous year: EUR 38.9 In the first three months of 2018, the oper- million) covered a large part of the net ating EBITDA margin came to 7.5% and thus cash outflow from operating activities and close to the figure of 7.7% recorded in the investing activities, resulting in cash and same quarter of the previous year. Despite cash equivalents (excluding securities) of the higher depreciation and amortisation ex- EUR 50.2 million at the end of the period pense of EUR 4.0 million in the period under under review (previous year: EUR 56.1 review (previous year: EUR 3.3 million), EBIT million). climbed to EUR 10.2 million, up from EUR 9.4 million in the previous year. Consequently, The firm orders held by the Group at the the EBIT margin contracted slightly from end of the first three months of 2018 were 5.7% in the previous year to 5.4%. At the valued at EUR 2,397 million, up from EUR 18 same time, however, the EBIT margin rela- 1,523 million in the previous year. Of this, tive to the business unit’s own manufactur- OHB System AG accounted for EUR 1,916 ing input widened substantially from 8.0% in million or a good 80%. the previous year to 9.6% in the first quar- ter of 2018. The decline in net finance ex- The OHB Group’s total assets increased by pense from EUR 0.9 million in the previous a good 1% over December 31, 2017 to EUR year to EUR 0.7 million in the period under 729.5 million as of March 31, 2018 (Decem- review primarily reflects increased funding. ber 31, 2017: EUR 719.7 million). This differ- Earnings before taxes (EBT) at the end of ence was materially due to substantially the first three months of 2018 rose by just higher inventories. Among other things, the under 8% to EUR 9.4 million (previous year: increase of around EUR 21 million in trade EUR 8.7 million). Despite income tax rising to payables more than covered the increase EUR 3.0 million in the period under review of just under EUR 12 million in inventories. (previous year: EUR 2.7 million), consolidat- The decline of around EUR 20 million in the ed net profit for the period climbed by 5% Group’s equity caused by the replacement to EUR 6.4 million (previous year: EUR 6.1 of IAS 11 (Construction Contracts) and IAS 18 million). (Revenues) by the new guidance contained in IFRS 15 (Revenue from Contracts with Cus- tomers) from 2018 resulted in an equity ra- tio of 25.8% as of March 31, 2018, down from 28.8% on December 31, 2017. OHB SE Q1/3-MONTH INTERIM REPORT 2018

GROUP INTERIM MANAGEMENT REPORT

KEY PERFORMANCE INDICATORS OF THE OHB GROUP

EUR 000s Q1/2018 Q1/2017

Sales 177,934 147,006 Total revenues 189,713 165,319 EBITDA 14,242 12,727 EBIT 10,220 9,416 EBT 9,365 8,708 Consolidated net profit for the period 6,359 6,050 Earnings per share (EUR) 0.34 0.31 Total assets as of March 31 729,547 710,244 Equity capital as of March 31 187,896 192,498 Cash flow used in operating activities – 49,081 – 29,224 Capital spending 3,417 10,526 Headcount as of March 31 2,496 2,309

SALES PER PRODUCT GROUPS 19

EUR 000s Q1/2018 Q1/2017

Space industry 172,031 140,118 Aero industry 3,201 3,837 Antenna 1,544 1,559 Others 1,158 1,492 Total 177,934 147,006

SALES PER REGIONS

EUR 000s Q1/2018 Q1/2017

Germany 50,163 45,837 Rest of Europe 126,172 100,319 Rest of World 1,599 850 Total 177,934 147,006 OHB SE Q1/3-MONTH INTERIM REPORT 2018

GROUP INTERIM MANAGEMENT REPORT

RESEARCH AND DEVELOPMENT OPPORTUNITY AND RISK REPORT At EUR 5.8 million in the first three months The risk report included in the annual report of 2018, research and development expense for 2017 describes in detail the risks and op- was down on the year-ago figure of EUR 10.0 portunities liable to impact the Company’s million. business performance. There were no mate- rial changes in the OHB Group’s opportunity CAPITAL SPENDING and risk profile in the period under review. Capital spending in the first three months of 2018 came to EUR 3.4 million, well down from OUTLOOK FOR THE GROUP AS the year-ago figure of EUR 10.5 million, which A WHOLE IN 2018 had included spending on tooling in prepara- The Management Board expects consolida- tion for Ariane 6 production at MT Aerospace, ted total revenues of EUR 1.000 million for Augsburg, among other things. 2018, accompanied by EBITDA of EUR 65 mil- lion and EBIT of 47 million in 2018. Given the EMPLOYEES greater order backlog and upbeat outlook At 2,496 on March 31, 2018, the OHB Group’s for the current year, we assume that the headcount was up over December 31, 2017 Group’s net assets and financial condition (2,420 employees). The employees shown for will also remain strong. the “Rest of the World” comprise 47 people employed in Chile and 63 in French Guiana.

20 NUMBER OF EMPLOYEES NUMBER OF EMPLOYEES BY BUSINESS UNITS BY REGIONS AS OF MARCH 31, 2018 AS OF MARCH 31, 2018

10 110 Rest of World 821 Holding 381 Aerospace + Europe without Industrial Products Germany

1,665 2,005 Space Systems Germany

TOTAL personnel: 2,496 TOTAL personnel: 2,496 OHB SE Q1/3-MONTH INTERIM REPORT 2018

SIGNIFICANT EVENTS OCCURRING AFTER THE END OF THE PERIOD UNDER REVIEW

OHB SYSTEM AG Scientists are hoping to gain answers to SELECTED FOR ESA questions such as: How do planet arise? SCIENTIFIC RESEARCH How do they change over time? MISSION PLATO Is our solar system unique? What characteristics do earth-like planets have in the habitable zone of stars? OHB System AG was selected by the Euro- pean Space Agency ESA as the princi- Once PLATO has reached its target orbit pal contractor for the PLATO scientific around Lagrange Point 22), the payload con- research mission on April 26. PLATO (Plane- sisting of a total of 26 cameras, will be tary Transits and Oscillations of Stars) is to aligned with stars against the dark backdrop be launched in 2026. It is a satellite-based of space. The cameras will be able to detect observatory for use in space to detect and very small and regular light losses, which conduct research into exoplanets1) orbiting occur when planets fly past the stars and in other solar systems. As the principal con- briefly hide part of the starlight. The aim is tractor, OHB System will be able to rely on to achieve extremely precise, long-term and an existing core team comprising Thales uninterrupted photometric observations of Alenia Space (France and the UK) and RUAG bright star in the visible range. This is the Space Switzerland to engineer and assem- only way of discovering the exoplanets. ble the satellite. The contract is worth PLATO will indirectly be seeking answers around EUR 297 million. The negotiations to the age-old question as to whether life with ESA are expected to be completed in exists in other solar systems. PLATO will mid-June, upon which the contract will be not only be detecting extrasolar planetary 21 signed. systems but also conducting research into them. The main focus will be on exploring This marks the first time that OHB will be the properties of terrestrial planets in the responsible for developing and assembling habitable zone around sun-like stars. In addi- an entire scientific research satellite for tion, PLATO will be measuring seismic activ- ESA. The contract covers the delivery of ities inside stars to characterise more pre- the two-tonne satellite including the neces- cisely the star in question and to determine sary pre-launch testing and support by OHB its age. staff during the launch campaign and the start-up phase in orbit. The contract will ex- 1) Planets are objects that are subject to the gravitational pull of a star and thus orbit it. Exoplanets or extrasolar pire with the completion of in-orbit verifica- planets are located outside our solar system and are thus tion to confirm the satellite’s full functional not subject to the sun’s gravitational pull. capabilities. 2) The satellite maintains its orientation in this orbit relative to the sun and the earth. The solar panels facing the sun Over the last two years, OHB System has generate the necessary energy. The normally three-month completed two preparatory studies ahead observation period is followed by a pivoting manoeuvre, which protects the payload from direct sunlight. of this PLATO mission. Under one ESA study, the teams worked closely on the develop- ment of the satellite design for the PLATO mission. The integration of the optical pay- load, which is being supplied by a Germany- led payload syndicate, was the subject of a study completed by OHB for the German Aerospace Center (DLR), culminating in DLR’s decision to award OHB System AG the contract. OHB SE Q1/3-MONTH INTERIM REPORT 2018

SIGNIFICANT EVENTS OCCURRING AFTER THE END OF THE PERIOD UNDER REVIEW

MT AEROSPACE MT AEROSPACE SHIPS AWARDED CONTRACT THE FIRST TANK FOR FOR THE PRODUCTION ARIANE 6 TO OF TEN ARIANE 5 SETS ARIANEGROUP IN BREMEN

MT Aerospace AG is producing the metal- MT Aerospace delivered the first compo- lic booster housings, tanks and other light- nent for the upper stage (hydrogen tank) for weight structures for further ten Ariane the new European launch vehicle Ariane 6 5 ECA launch vehicles. In two years’ time, to ArianeGroup’s new production center in launch operations for the future European Bremen on April 4. Fabricated in Augsburg Ariane 6 launch vehicle are to commence using the latest equipment and optimised step by step at the Kourou space centre in processes, the tank floors and cylindre South America. panels were assembled by MT Aerospace in Bremen to form a propellant tank. Production of the initial components under the new contract has already been com- MT Aerospace is playing a crucial role in the menced by Europropulsion (booster), Ariane- development and industrialisation of the Group (structure) and Eurocryospace at MT Ariane 6 launcher system. With an industrial Aerospace. By the time it ships the final set proportion of around 10 percent, MT Aero- in mid-2020, MT Aerospace will have worked space is developing technical innovations on the assembly of a total of 93 Ariane 5 for metal structures for enhancing the com- 22 launch vehicles. In operation since 1996, petitiveness of this future launch vehicle Ariane 5 is the most reliable, powerful and in its capacity as a risk share partner and successful launcher to date. cluster prime.

Hydrogen tank of Ariane 6 OHB SE Q1/3-MONTH INTERIM REPORT 2018

SIGNIFICANT EVENTS OCCURRING AFTER THE END OF THE PERIOD UNDER REVIEW

FIRST TWO GALILEO FOC* SATELLITES SHIPPED ALREADY FOR THE NEXT LAUNCH IN JULY

Two of the four Galileo FOC* satellites painting competition. OHB has thus sent that are to be transported into space the 19th and 20th Galileo satellites on their in July with an Ariane 5 rocket left the journey – 18 identical satellites are already Bremen site of OHB System AG on May 3rd. in space. Another pair of satellites will be Tara and Samuel were scheduled to arrive sent to the space launch site in June. The at Cayenne Airport the following day and completed satellite quartet will be submit- be transported to the launch site. Each sat- ted to a series of functional tests before ellite is named after one of the children they will be integrated into the rocket. who won the European Commission's 2011

23

Galileo FOC* satellites at in production at OHB

Galileo satellite protected in its container being unloaded from freight liner at French Guiana OHB SE Q1/3-MONTH INTERIM REPORT 2018

CONSOLIDATED INCOME STATEMENT

EUR 000s Q1/2018 Q1/2017

Sales 177,934 147,006 Changes in inventories of finished goods and work in progress 6,553 10,675 Other own work capitalised 3,118 6,287 Other operating income 2,108 1,351 Total revenues 189,713 165,319 Cost of materials 110,438 88,756 Staff costs 49,817 47,182 Depreciation/amortisation 4,022 3,311 Other operating expenses 15,216 16,654 Earnings before interest and taxes (EBIT) 10,220 9,416 Other interest and similar income 687 567 Other financial expenses 1,590 1,298 Currency translation gains/losses 48 21 24 Net profit/loss from shares carried at equity 0 0 Investment income 0 2 Net finance expense – 855 – 708 Earnings before taxes 9,365 8,708 Income taxes 3,006 2,658 Consolidated net profit for the period 6,359 6,050 Consolidated net profit after minority interests 5,875 5,382 Minority interests 484 668 Number of shares excl, own shares 17,387,600 17,387,600 Earnings per share (basic in EUR) 0.34 0.31 Earnings per share (diluted in EUR) 0.34 0.31

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

EUR 000s Q1/2018 Q1/2017

Consolidated net profit for the period 6,359 6,050 Remeasurement of defined benefit pension plans – 2 0 Remeasurement of defined benefit plans of associated companies 0 Items that will not be reclassified to profit and loss – 2 0 Exchange differences on translation foreign operations – 147 – 6 Exchange differences of associated companies 0 Net gains/losses from the measurement of financial assets recorded under equity – 1,958 2,969 Income/expenses arising during the year – 51 – 10 Cash flow hedges of associated companies 0 Items which may be subsequently reclassified to profit and loss – 2,156 2,953 Other comprehensive income after tax – 2,158 2,953 Comprehensive income 4,201 9,003 Of which attributable to equity holders of OHB SE 3,732 8,338 other equity holders 469 665 OHB SE Q1/3-MONTH INTERIM REPORT 2018

CONSOLIDATED CASH FLOW STATEMENT

EUR 000s Q1/2018 Q1/2017

Earnings before interest and taxes (EBIT) 10,220 9,417 Income taxes paid – 8,375 – 2,644 Other non-cash expenses (+)/income (–) 0 0 Depreciation/amortisation 4,022 3,311 Changes in pension provisions – 1,014 – 665 Profit (-)/loss (+) from the disposal of assets 17 11 Gross cash flow 4,870 9,430 Increase (–)/decrease (+) in own work capitalised – 3,118 – 5,982 Increase (–)/decrease (+) in inventories – 11,501 – 4,706 Increase (–)/decrease (+) in receivables and other assets including deferred items – 26,776 – 7,016 Increase (+)/decrease (–) in liabilities and current provisions 15,137 – 6,862 Increase (+)/decrease (–) in prepayments received – 27,693 – 14,088 Cash outflow for operating activities – 49,081 – 29,224 Payments made for investments in non-current assets – 3,417 – 10,526 25 Payments received from disposals of non-current assets 0 0 Interest and other investment income 296 308 Cash outflow for investing activities – 3,121 – 10,218 Dividends distributed 0 0 Payments made for the settlement of financial liabilities 0 – 70 Payments received from raising borrowings 44,371 39,873 Minority interests 0 – 108 Interest and other finance expense – 491 – 771 Cash inflow from financing activities 43,880 38,924 Cash changes to cash and cash equivalents – 8,322 – 518 Currency-translation-related changes to cash and cash equivalents – 48 18 Cash and cash equivalents at the beginning of the period 58,578 56,567 Cash and cash equivalents at the end of the period 50,208 56,067 OHB SE Q1/3-MONTH INTERIM REPORT 2018

CONSOLIDATED BALANCE SHEET

EUR 000s 31/3/2018 31/12/2017

ASSETS Goodwill 7,131 7,131 Other intangible assets 104,279 103,217 Property, plant and equipment 78,937 77,698 Shares carried at equity 2,388 2,388 Other financial assets 30,763 32,610 Other long-term receivables and assets 2,152 2,152 Securities 219 219 Deferred taxes 16,917 14,134 Long-term assets 242,786 239,549 Inventories 60,338 48,837 Trade receivables 84,321 70,613 Contract assets 244,047 257,634 Tax receivables 3,766 3,396 26 Other non-financial assets 43,624 40,630 Securities 457 461 Cash and cash equivalents 50,208 58,578 Current assets 486,761 480,149 Total assets 729,547 719,698 OHB SE Q1/3-MONTH INTERIM REPORT 2018

EUR 000s 31/3/2018 31/12/2017

SHAREHOLDERS’ EQUITY AND LIABILITIES Subscribed capital 17,468 17,468 Additional paid-in capital 14,923 14,923 Retained earnings 521 521 Unrealised gains and loss recognised under equity – 4,241 – 2,099 Treasury stock – 781 – 781 Consolidated profit 139,889 157,599 Shareholders’ equity excluding minority interests 167,779 187,631 Minority interests 20,117 19,649 Shareholders’ equity 187,896 207,280 Provisions for pensions and similar obligations 96,279 96,587 Non-current other provisions 2,088 1,891 Non-current financial liabilities 30,414 30,414 Non-current advance payments received on orders 29,207 8,291 27 Deferred income tax liabilities 32,842 36,505 Non-current liabilities and provisions 190,830 173,688 Current provisions 26,854 27,977 Current financial liabilities 108,257 63,886 Trade payables 104,076 83,141 Contract liabilities 89,280 133,978 Current advance payments received on orders 1,900 5,811 Income tax liabilities 4,100 2,711 Other financial and non-financial liabilities 16,354 21,226 Current liabilities 350,821 338,730 Total equity and liabilities 729,547 719,698 OHB SE Q1/3-MONTH INTERIM REPORT 2018

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Share- holders’ Other equity Sub- Additional compre- Consoli- excluding Share- scribed paid-in Retained hensive dated Treasur y minority Minority holders’ EUR 000 capital capital earnings income profit stock interests interests equity Balance on January 1, 2017 17,468 14,923 521 – 4,682 141,199 – 781 168,648 14,942 183,590 Dividend payment 0 0 0 0 0 0 0 0 0 Comprehensive income 0 0 0 2,966 5,382 0 8,348 560 8,908 Other changes 0 0 0 0 0 0 0 0 0 Balance on March 31, 2017 17,468 14,923 521 – 1,716 146,581 – 781 176,996 15,502 192,498 Balance on December 31, 2017* 17,468 14,923 521 – 2,099 157,599 – 781 187,631 19,649 207,280 Changes in accounting standards 0 0 0 0 – 23,585 0 – 23,585 0 – 23,585 28 Balance on January 1, 2018 17,468 14,923 521 – 2,099 134,014 – 781 164,046 19,649 183,695 Comprehensive income 0 0 0 – 2,142 5,875 0 3,733 468 4,201 Other changes 0 0 0 0 0 0 0 0 0 Balance on March 31, 2018 17,468 14,923 521 – 4,241 139,889 – 781 167,779 20,117 187,896 OHB SE Q1/3-MONTH INTERIM REPORT 2018

SEGMENT REPORTING JANUARY 1 TO MARCH 31, 2018

Aerospace Space + Industrial Consoli- Systems Products Holding dation Total

EUR 000s 2018 2018 2018 2018 2018

Sales 141,967 37,364 0 – 1,397 177,934 of which internal sales 29 1,368 0 – 1,397 0 Total revenues 147,073 44,020 1,286 – 2,666 189,713 Cost of materials and services purchased 93,416 18,309 0 – 1,287 110,438 EBITDA 9,886 4,383 – 27 0 14,242 Depreciation/amortisation 2,667 1,349 6 0 4,022 EBIT 7,219 3,034 – 33 0 10,220 EBIT margin 4.9% 6.9% 5.4% Own value creation 66,953 39,884 106,837 EBIT margin on own value creation 10.8% 7.6% 9.6%

29

Aerospace Space + Industrial Consoli- Systems Products Holding dation Total

EUR 000s 2017 2017 2017 2017 2017

Sales 106,485 44,242 0 – 3,721 147,006 of which internal sales 188 3,533 0 – 3,721 0 Total revenues 113,796 55,211 1,855 – 5,543 165,319 Cost of materials and services purchased 62,534 29,137 0 – 2,915 88,756 EBITDA 8,563 4,327 – 163 0 12,727 Depreciation/amortisation 1,956 1,362 6 – 13 3,311 EBIT 6,607 2,965 – 169 13 9,416 EBIT margin 5.8% 5.4% 5.7% Own value creation 65,537 52,766 118,303 EBIT margin on own value creation 10.1% 5.6% 8.0% OHB SE Q1/3-MONTH INTERIM REPORT 2018

GENERAL INFORMATION ON THE Q1/3M INTERIM REPORT 2018

OHB SE is a listed stock corporation domi- required by IFRS for the consolidated finan- ciled in Germany. The consolidated financial cial statements to be prepared for a full statements for the interim report on OHB SE year. and its subsidiaries (the “Group”) for the first three months of 2018 were approved for pub- The Management Board takes the view that lication in a resolution passed by the Manage- these unaudited interim consolidated finan- ment Board on May 9, 2018. cial statements contain all adjustments needed to provide a true and fair view of the OHB SE’s interim consolidated financial Company’s results of operations, financial statements include the following companies: position and net assets. The results reported • OHB System AG, in the period ending March 31, 2018 are not Bremen & Oberpfaffenhofen necessarily a guide to the Company’s future • OHB Italia S.p.A., Milan, Italy performance. • OHB Sweden AB, Stockholm, Sweden • Antwerp Space N.V., Antwerp, Belgium In connection with the preparation of the in- • LuxSpace S.à r.l., Betzdorf, terim consolidated financial statements in 30 Luxembourg accordance with IAS 34 “Interim Financial • MT Aerospace Holding GmbH, Bremen Reporting”, the Management Board is re- • MT Aerospace AG, Augsburg quired to make certain assessments and es- • MT Aerospace Grundstücks timates as well as assumptions influencing GmbH & Co. KG, Munich the application of the accounting principles • MT Mechatronics GmbH, Mainz within the Group and the recognition of • MT Aerospace Guyane S.A.S., assets and liabilities as well as income and Kourou (GUF) expenses. The actual amounts may vary from • OHB Teledata GmbH, Bremen such estimates and adjustments. • OHB Digital Services GmbH, Bremen • ORBCOMM Deutschland The recognition and measurement methods Satellitenkommunikation AG, Bremen used in the interim consolidated financial statements match those applied to the con- The results of the non-consolidated affiliat- solidated financial statements as of the end ed companies are not included in the interim of the last financial year except for the fol- reports. lowing changes: From 2018, the previous standards IAS 11 (Construction Contracts) BASIS FOR REPORTING and IAS 18 (Revenue) have been replaced by These unaudited interim consolidated finan- the new guidance provided by IFRS 15 (Reve- cial statements have been prepared in nue from Contracts with Customers). OHB accordance with the International Financial analysed all customer contracts which were Reporting Standards (IFRS) and the related still ongoing on December 31, 2017 to deter- interpretations of the International Account- mine their relevance for IFRS 15 and made ing Standards Board (IASB) applicable to in- the necessary adjustments to the recogni- terim reporting as endorsed by the European tion of revenue. It is applying the modified Union and the additional provisions of com- retrospective method, under which the mercial law to be applied in accordance with changes over the annual financial state- Section 315 a (1) of the German Commercial ments for 2017 are recognised through cor- Code. Accordingly, this interim report does responding adjustments to the unappropriat- not include all the information or notes ed surplus within equity. OHB SE Q1/3-MONTH INTERIM REPORT 2018

The timing of the recognition of revenue RESPONSIBILITY STATEMENT under individual long-term development and BY MANAGEMENT production contracts has changed in individ- “To the best of our knowledge, the interim ual cases as a result of the new guidance. consolidated financial statements give a true Up until 2017, individual related contracts in and fair view of the assets, liabilities, finan- the “Space Systems” business unit were cial position and profit or loss of the Group viewed as a single economic unit under IAS 11 in accordance with the generally accepted and the corresponding revenue recognised principles of proper accounting, and the using a uniform approach. As this is no longer interim management report of the Group possible under IFRS 15, each of these con- includes a fair review of the development tracts must be measured individually. This and performance of the business and the has resulted in a retroactive reduction in the position of the Group, together with a share in profit already recognised in previous description of the principal opportunities and periods due to the lower proportionate rev- risks associated with the expected develop- enue. This effect as a value of EUR 23.585 ment of the Group for the remaining months million after deferred income taxes and is of the financial year.” deducted from equity. Bremen, May 9, 2018 Income taxes are calculated on the basis of The Management Board a tax rate of around 32%.

There have been no material changes in he basis underlying the estimates applied since the annual report for 2017. A detailed 31 description of the accounting principles can be found in the notes to the consolidated IMPRINT financial statements included in the annual Copy and content: report for 2017. OHB SE, Bremen, Germany AUDIT REVIEW This interim report has not been audited PvF Investor Relations, orreviewed by a statutory auditor in accor- Oberursel, Germany dance with Section 317 of the German Com- mercial Code. Layout: Ligaturas – Reportdesign, Berlin, Germany

Photos: Antwerp Space N.V., Mike Auerbach, Bettina Conradi, DGzRS, ESA ARG medialab, ESA A. Baker, ESA C. Carreau, ESA David Ducros, ESA P. Muller, MT Aerospace, OHB SE, OHB System AG, planetmutlu

* European global satellite-based navigation system. The FOC (full operational capability) phase of the Galileo programme is being funded by the European Union. The European Commission and the European Space Agency ESA have signed a contract under which ESA acts as the development and sourcing agency on behalf of the Commission. The views expressed here do not necessarily constitute the positions of the European Union and ESA. “Galileo” is a registered trademark owned by the EU and ESA under the HABM application number 002742237. FINANCIAL CALENDAR 2018

Q1/3M INTERIM REPORT / MAY 9, 2018 Analyst conference call

ANNUAL GENERAL MEETING MAY 24, 2018 Bremen

Q2/6M INTERIM REPORT / AUGUST 9, 2018 Analyst conference call

Q3/9M INTERIM REPORT / NOVEMBER 13, 2018 Analyst conference call

OHB SE Karl-Ferdinand-Braun-Str. 8 28359 Bremen, Germany

Phone: +49(0)421 2020-8 FAX: +49(0)421 2020-613 [email protected] OHB – Official partner www.ohb.de to Werder Bremen